TIRANA, May 5 /ATA/ The Contingency Fund increased by ALL 896.2 million from the collection of the banks’ annual contributions, at the beginning of April 2023, the Bank of Albania announced on Friday.
According to BoA, in total, after the annual contribution of the banks for six years since its establishment, the Contingency Fund reaches the level of 4.457 billion ALL.
The Contingency Fund was established in 2018, for the purpose of implementing the contingency instruments by the Bank of Albania. Pursuant to law no. 133/2016 “On recovery and extraordinary intervention in banks, in the Republic of Albania”, the fund must reach the target level of 0.5% of the total liabilities of the banking system, calculated as the difference between total assets and the regulatory capital of all banks licensed in the Republic of Albania, within 10 years from the entry into force of the law. Banks pay regular annual contributions in order to meet the target level of the fund.
According to the deadline stipulated in the law, the Contingency Fund must reach the value of 8 billion ALL within 2027. To meet this target level, during 2023, the annual contribution of the banking sector was calculated at the value of 896.2 million ALL.
After collecting the contribution for the sixth year, at the end of April 2023, the fund reached the level of 4.457 billion ALL, as a result of the annual contributions of the banks collected in six years (2018-2023).
The Contingency Fund is administered by the Deposit Insurance Agency, in accordance with the fund’s financial management policy, approved by the Bank of Albania.
/sm/
